Reading time: 6 minutes, Category: Property Trends
Planning to purchase your dream apartment in Dhaka? For many, buying a home is one of life’s greatest achievements. With increasing property prices, most homebuyers depend on home loans to make this dream come true. If you are going to apply for a home loan in Bangladesh, you may find the process complex — from eligibility criteria to document collection and bank verification.
To make you feel secure and ready, this manual divides the whole home loan process in Bangladesh into each step with useful tips as well as solutions to frequent questions.
Step 1: Check Your Eligibility
Before going to any bank, you must first check whether you are eligible according to the basic criteria. Although the conditions may be very slightly different for different banks, the following are the general criteria:
Age: Usually between 21 to 65 years.
Income: A minimum income of BDT 40,000 or more per month (subject to the bank and property value).
Employment: The salaried applicant must have a minimum of two years’ stable employment, while self-employed professionals and business owners must have three years’ employment.
Employer or Business Approval: Your employer or business must be registered in their list of approved organizations in some banks.
Tip: To be sure, check your credit history with the Credit Information Bureau (CIB) before applying. A negative credit record can influence loan approval.
Step 2: Documents to Provide
The bank will require various documents to confirm your identity, income, and property holding status. Get them ready in advance to save time:
National ID card or valid Passport
Current passport-sized photographs
Salary slips or income certificate (for salaried class only)
Bank statements for the past 6–12 months
Tax Identification Number (TIN) certificate
Trade license and financial documents (for self-employed applicants)
Property documents like the sale agreement, deed, or allotment letter
Tip: Make sure that the property documents are legally attested to prevent issues down the line.
Step 3: Compare Various Banks and Loan Offers
Not all home loans are created equal. Every bank in Bangladesh has varying terms, and you can end up saving a lot of money in the long term if you pick the right one. When comparing, consider:
Interest Rates: Typically between 8% and 10%.
Loan Tenure: Between 5 and 20 years.
Down Payment: Typically 10%–30% of the value of property.
Processing Fees: Usually 0.5%–1% of the loan.
Early Repayment Charges: There are penalties if you repay the loan ahead of schedule.
Tip: Don’t settle for the cheapest interest rate. Look out for charges, flexibility in repayments, and customer care standards.
Step 4: Apply For Your Loan
Once you shortlist a bank that meets your requirements, you can apply formally:
Carefully fill in the loan application form.
Append all necessary documents.
Pay a non-refundable processing charge.
At this point, the bank will create a file in your name and begin determining your suitabilit
Step 5: Bank Verification and Property Inspection
After receiving your application, the bank will conduct a few checks:
Credit Check: The bank checks your credit history and payment record from the CIB.
Income Verification: They authenticate your salary, business returns, or other income sources.
Property Verification: The bank verifies that the property is free of disputes legally.
Property Valuation: An inspector is deployed to assess the value of the property against the loan amount you have applied for.
Tip: Opt for a well-known developer or property vendor, since banks feel more at ease sanctioning loans for authenticated projects.
Step 6: Loan Approval and Disbursement
Once your application clears all checks, the bank will issue an approval letter with the loan amount, tenure, interest rate, and repayment schedule. Once you have accepted and signed the agreement:
The bank drafts the loan agreement documents.
You give post-dated cheques or standing instructions for EMI.
The bank pays the amount directly to the seller or developer.
Congratulations! You are just a few steps away from occupying your desired residence.
Final Thoughts
Getting a home loan in Bangladesh may seem daunting initially, but if you do it step by step, you’ll find it to be easy. Begin by finding out your eligibility, getting your documents ready, and comparing loan terms carefully. Remember to choose a trusted bank and ensure that your property is legally verified. With proper planning and the right guidance, you’ll be well on your way to owning your dream apartment in Dhaka or any other city in Bangladesh.
FAQs
The majority of banks provide home loans between BDT 20 lakh to BDT 2 crore, subject to your earnings and payment capacity.
No. Typically, banks lend 70%–90% of the property value. The remaining amount is to be paid as a down payment.
The process typically takes 2–6 weeks depending upon the speed of document verification and property inspection.
Yes, several banks provide home loans to NRBs if they can produce evidence of foreign income and have a bank account in Bangladesh.
Defaulting on an EMI can attract penalties, extra interest, and a negative marking on your credit record. Repeated defaults can attract legal action.
